Q: Good morning,
Can you please give us your opinion on Profound Medical after their earnings miss this week? Is it still worth holding, or do you feel the cash burn will require share issues and resulting dilution. Thank you.
5i Research Answer:
With only $1.3M in revenue, we would not consider results nor a miss particularly meaningful yet. In fact, two brokers raised target prices after the quarter. Revenue did rise 26%. With about 18 months of cash, an issue would not surprise us in any way. We think it remains high risk, but worth holding.